On the Testability of Causal Models with Latent and Instrumental Variables

Judea Pearl

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arXiv · 1302.4976

On the Testability of Causal Models with Latent and Instrumental Variables

Judea Pearl

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Abstract

Certain causal models involving unmeasured variables induce no independence constraints among the observed variables but imply, nevertheless, inequality contraints on the observed distribution. This paper derives a general formula for such instrumental variables, that is, exogenous variables that directly affect some variables but not all. With the help of this formula, it is possible to test whether a model involving instrumental variables may account for the data, or, conversely, whether a given variables can be deemed instrumental.

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Judea Pearl. 2013-02-20. On the Testability of Causal Models with Latent and Instrumental Variables. https://arxiv.org/abs/1302.4976

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